08.05.10
Posted in International Organisations, Seychelles government, Seychelles legislation at 11:55 am by Robert Klien
According to the International Monetary Fund (IMF), Seychelles is meeting the performance criteria under its Extended Funds Facility, namely in the launch of tax reforms.
A comprehensive tax reform was launched by the Seychelles government with the budget 2010. The first stage of it was the introduction of a revised Business Tax Act from January 1, 2010. Business tax reform widened the tax base and provided for gradual reduction in tax rates.
The second stage has been the introduction of a withholding-based personal income tax on wages from July 1, 2010. Seychelles government is planning to broaden the application of personal income tax to other sources of domestic-sourced income, as the new system becomes established. From January 1, 2011, Personal Income Tax rates will be set at 15% for all categories of workers.
The last stage will be the introduction of a value-added tax (VAT) from January 1, 2012, which will take the place of multiple-rate goods and services tax (GST).
Along with these reforms, revenue administration will be also modernized. By the time of the tax reform, the Seychelles government’s policy will not provide new tax incentives and exemptions.
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04.17.10
Posted in International relations, Seychelles government, Seychelles legislation at 10:44 am by Robert Klien
On April 16, a high-level meeting on piracy was held in Seychelles. Among the issues discussed at the event was the necessity of stronger support for the country in the international fight against piracy.
At the event, the chairman of the high-level committee on piracy, Joël Morgan, met with the chairman of the working group II of contact group on piracy off the coast of Somalia, ambassador Thomas Winkler, and representative of the UNODC. Also, the meeting was attended by British high commissioner Mathew Forbes and French ambassador Philippe Delacroix.
Much attention was paid to discussing the positioning in the jurisdiction of people to support the criminal justice system in order to coordinate the material, human resources and financial support mechanisms that the country is to benefit from within the context of its anti-piracy activities. Also, the minister was talking about the upcoming working group II meeting in Copenhagen (Denmark) where legal issues of transfer arrangements of convicted pirates back to Somalia will be discussed. He said that there is an urgent need for the prisons in Somalia to hold convicted pirates. Also, according to the policy of government, the Somali authorities must take responsibility for the actions of their citizens convicted of piracy.
Ambassador welcomed Seychelles’ new anti-piracy legislation. Also, he expressed the appreciation of the active role the jurisdiction has taken to counter piracy and to bring pirates to justice. Winkler also expressed his support for the Seychelles’ position against piracy internationally.
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03.30.10
Posted in Seychelles government, Seychelles legislation at 5:07 pm by Robert Klien
As from January 1, 2010, the Seychelles Revenue Commission introduced a Seychelles Business Number (SBN) and a Taxpayer Identification Number (TIN).
According to the Commission, SBN and the new GST system will be introduced by the government of Seychelles in 2012. A new goods and services tax (GST) system will be introduced on January 1, 2012 and will be akin to the value-added tax (VAT) in countries such as the United Kingdom. The SBN will be an important part of this new tax system that will give taxpayers the opportunity and the time to familiarize themselves with the SBN as well as to register their business in preparation.
It should be noted that, as regards the registration to obtain an SBN, nothing has changed. However, in the state-of-the-nation address on February 26, 2010, President James Michel said anounced a phasing-in of the SBN.
From January 1, 2010, there was a withholding obligation where a business sold goods or services without quoting their SBN on invoices over R5,000. However, this is no longer in place. This change is effective from January 1, 2010.
In addition to the SBN, the Seychelles Revenue Commission has introduced a Tax Identification Number (TIN) as part of the tax reform programme. The TIN will replace the old Business Tax ID and Social Security number.
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03.18.10
Posted in Seychelles legislation at 11:57 am by Robert Klien
Minister Joel Morgan said that moves to amend the Penal Code prove the government’s commitment to countering piracy. On March 16, Morgan was speaking in the National Assembly to present the Penal Code (Amendment) Bill that will define the action of piracy and empower the attorney-general to prosecute offences regardless of whether they are committed in or outside the jurisdiction.
The Minister for Environment, Natural Resources and Transport, as well as the head of the High-Level Committee on Piracy said that the amendments update an English law of 1843.
Morgan explained that there is a need to take measures to counter piracy as the situation is getting worse that is revealed by up to 10 attacks by suspected pirates around Seychelles’ exclusive economic zone in the last 10-12 days. The existing laws were not well-suited to the situation like this, while the amended law includes a number of provisions of the UN Convention on the Law of the Sea. With the changes, courts in Seychelles will be given the power to impose a punishment of 30 years in prison and a fine of R1 million on a person committing the offence of piracy or attempting or conspiring to commit piracy.
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01.21.10
Posted in Business and Economy, Seychelles legislation at 4:27 pm by Robert Klien
The newly-formed Fair Trading Commission will look out for practices that hinder competition as well as advise on or take action against them. This was announced by the Commission’s chief executive Daniel Gappy on January 20.
According to Gappy, one of the practices is price fixing for which the Fair Trading Commission can fine or jail guilty traders.
On January 15, the commission’s board members met for the 1st time. At the meeting, the commission’s chairman, Dr Shelton Jolicoeur, said that liberalisation of the market economy can “not only bring fierce and vigorous competition but also some amount of anti-competitive practices as firms jostle for economic advantage”.
Gappy said: “When we receive complaints we will investigate them, and the commission will give a ruling based on its findings”. The commission can impose a fine, a jail sentence or both. The traders can appeal agaist its decision to the tribunal and later at the Supreme Court.
The newly-created body will be fully operational in April2010 as the Fair Competition Act will come into force in April.
The Fair Competition Act is aimed to encourage competition in trade and business as well as in the supply of a wide variety of quality goods and services at competitive prices.
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12.13.09
Posted in Seychelles government, Seychelles legislation at 6:42 pm by Robert Klien
The Seychelles’ Ministry of Finance has announced that the rate of trades tax on commercial and specialised vehicles will remain unchanged in 2010. It will be 25% and 0% respectively, but the tax on buses will be 5%.
When announcing the 2010 Budget Address in the beginning of December, Minister for Finance Danny Faure said that, as from January 1, 2010, rates of trades tax on passenger motor vehicles will be reduced across the board from between 75% and 225% to 25%.
Also, an excise tax will be introduced to offset some of these trades tax reductions.
It should be noted that the decision on taxes is in line with the government’s intention to bring Seychelles’ tax regulations up to international standards.
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12.04.09
Posted in Seychelles government, Seychelles legislation at 12:24 pm by Robert Klien
Legal action is among new measures that can be taken by the Employment Department in order to ensure employers comply with the minimum wage regulation set up in January 2008.
The new measures are necessary now as a rise of R1 an hour in the minimum wage has been announced. The new rate will be R16.50 an hour as from July 2010 – this increase was announced by Minister for Finance Danny Faure during his 2010 Budget Address.
Director General for employment Jules Baker said that despite the regulation, there are still complaints being received from workers who are not being paid properly. If found guilty, employers will be fined from R1,000 up to R10,000 depending on the offence. Those who go on refusing to comply with the regulation will pay an extra fine of R200 a day.
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07.29.09
Posted in Business and Economy, International Organisations, International relations, Seychelles legislation at 10:27 am by Robert Klien
The Executive Board of the International Monetary Fund (IMF) has recently completed the second review of Seychelles’ economic programme under the two-year stand-by arrangement. By the results of the review, IMF decided to approve a disbursement to Seychelles in the amount of approximately US$1.4 million.
The Executive Board of IMF also completed the latest review of quarterly financing assurances and approved the modification of quarterly quantitative performance criteria, and agreed to establish a schedule of semi-annual program reviews.
Deputy managing director and chairman of the Executive Board, Mr. Takatoshi Kato, speaking about Seychelles, noted rapid progress on macroeconomic stabilization of the jurisdiction, and the significant fiscal consolidation backed by the market-based monetary policy. By his words, the country should continue its efforts to expand monetary policy instruments, and modernize “the the legal and institutional framework for the financial sector.”
He pointed out that the authorities of Seychelles “have strengthened tax administration and launched a fundamental tax policy reform, which are key to improving the investment climate, reducing economic distortions, and securing fiscal sustainability.”
Mr. Kato also said that good progress is being made with public external debt restructuring, and the authorities should reinforce their debt management capacity, supported by IMF technical assistance.
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04.11.09
Posted in Business and Economy, Seychelles government, Seychelles legislation at 3:44 pm by Robert Klien
President James Michel has recently repeated his call for Seychellois to be innovative and develop as entrepreneurs because this is a good way to make for a living and to create employment. President Michel expressed his confidence that in future this will be an important sector in the economy of Seychelles.
This was said in the speech the President held in his monthly television programme entitled En Moman Avek Prezidan. The theme of this progremme’s interview was employment. He noted that creating jobs is not easy, and employment comes through investment or through the support to businesses in the private sector.
To urge entrepreneurial development, the President announced a doubling of funds of the Small Credit Agency – from R10 million to R20 million and an increase in the maximum amount that can be borrowed by from R200 000 to R300 000. The economic programme is aimed to encourage people to start their own businesses.
The President suggests that small businesses, especially those Seychellois-owned ones, are of a special importance.
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01.11.09
Posted in Seychelles government, Seychelles legislation at 6:17 am by Robert Klien
On January 8, 2009, newly appointed Court of Appeal Judge Anthony Fernando, Attorney General (AG) Ronny Govinden and Puisne Judge Mohan Burhan along with newly reappointed Electoral Commissioner Hendrick Gappy were sworn in before Seychellois President James Michel. The event took place at State House.
The ceremony was attended by Vice-President Joseph Belmont, Designated Minister and Minister for Finance Danny Faure, Speaker of the National Assembly Dr Patrick Herminie, Master and Registrar of the Supreme Court Melchior Vidot, President of the Court of Appeal Francis MacGregor, Chief Justice Ranjan Perera, the chairman of the Constitutional Appointments Authority Jeremie Bonnelame, the secretary to the Cabinet Mohammed Afif, as well as by other judges and members of the families of the appointees.
Justice MacGregor said that the new judges will make the process of cases faster.
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